U.S. China Trade Relationship Shaky

China is currently the United States’ biggest source of imports and one of its top export markets. President Trump has promised to enforce U.S. trade laws and agreements and promote free and fair trade with China. President Trump recently met with China’s president, Xi Jinping, to discuss trade practices. But the trade relationship is still shaky. Another focus in the relationship with China is the rapid increase of Chinese investment in U.S. start up companies. Listen to learn about the realities of investments and trade between the U.S. and China.

Related Current Events

Three countries are watching the policies of President Trump closely, since their relationship to the United States will likely change under this administration: China, Russia and Mexico. In China, they are watching what Trump has said about the One China policy, along with possible trade wars. In Mexico they are worried about the U.S. building a longer border wall and the President’s threat to impose a 20% tax on imported goods. In Russia, they are hoping sanctions will be lifted. Listen to hear three NPR reporters in China, Russia and Mexico talk about perceptions of the new President in each country.

As a part of his campaign promise to re-evaluate America’s free trade commitments, President Trump is pulling the United States out of a negotiated but not ratified agreement, the Trans-Pacific Partnership, or TPP. Trump promised on the campaign trail to withdraw from the TPP. He is also expected to renegotiate NAFTA, the North American Free Trade Agreement. Listen to one of Trump’s former economic advisors explain the new administration’s views on trade.

Over the past few years, China has turned reefs in the South China Sea into artificial islands. Rival countries in the region have disagreed about who owns the islands. Satellite images show that China is possibly militarizing those islands by building ports, landing strips and military aircrafts. New images indicate China is building large hangars for aircraft. Listen to the story to hear about this possible militarization and what it could mean for the region.

Since June 2015, the stock market in China has been posting losses, falling as much as 11% in one week. The crash in China has spilled over into global markets. Last week the Dow Jones, a U.S. stock market index, closed below 17,000 for the first time in almost a year, possibly due to fear that the plunging Chinese economy will bring others down with it. The government in China has been trying to manage its economy by cutting rates and announcing a surprise currency devaluation, but these efforts are not stopping the drop. What more can they do? Listen to hear from investment experts about the stock market crash in China.

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